China Nonferrous Gold Limited (AIM:CNG), the mineral exploration and
development company currently developing the Pakrut Gold Project (‘the
Pakrut Project’) in the Republic of Tajikistan, today announces its
interim results for the six-month period ended 30 June 2016.

The results below are available on the Company's website at www.cnfgold.com.

Highlights

2,183 metres of tunneling and cuttings at various levels completed by
the end of August;

11,500 metre of drilling as part of face preparation and 4,497 metres
of in-fill drilling completed;

More than 122,000 tonnes of ore has been extracted during the first
half of 2016 from above levels and has been stockpiled;

Technical enhancements to the plant completed following trial
production;

Processing capacity currently at 1700 tonnes per day;

1,777 tonnes of gold concentrate produced and 150,000 tonnes of ore
stockpiled by the end of August

Pakrut operating board strengthened

Debt re-financing of US$120 million with CNMC International Capitals
Company Limited and post period end up to US$100 million with China
Construction Bank Corporation Macau Branch, both at lower cost

For further information please visit the Company’s website (www.cnfgold.com)
or contact:

China Nonferrous Gold Limited

David Tang, Managing Director

Tel: +86 10 8442 6681

Investec Bank Plc Jeremy Ellis,

George Price

Tel: +44 (0)20 7597 5970

Blytheweigh

Tim Blythe, Camilla Horsfall

Tel: +44 (0)20 7138 3204

Project Summary

The Pakrut gold project, of which CNG has 100 per cent ownership, is
situated in Tajikistan approximately 120km northeast of the capital city
Dushanbe. Pakrut is located within the Tien Shan gold belt, which

extends from Uzbekistan into Tajikistan, Kyrgyzstan and Western China,
and which hosts a number of multi-million ounce gold deposits.

CNG is transitioning from construction with mining contractors on site
developing the underground mine and surface infrastructure to production
phase.

About Tajikistan

Tajikistan is a secular republic located in Central Asia. The country is
a member of the Commonwealth of Independent States and the Shanghai
Cooperation Organisation. Tajikistan hosts numerous operating precious
metal mines as well as the largest aluminium smelter in Central Asia.
CNG's management team has extensive experience in the mining industry in
Tajikistan.

CHINA NONFERROUS GOLD LIMITED Chairman’s Statement

Construction and Production

During the first half year of 2016, the Company has made considerable
progress on reaching the designed capacity of Pakrut Gold Project.

The tunneling and cuttings at 2110, 2170, 2230 and 2292 levels have
reached 2,183 metres by the end of August. 11,500 metres of drilling for
face preparation and 4,497 metres of in-fill drilling has been completed
across the sub-levels. More than 122,000 tonnes of ore has also been
extracted from above levels since the start of 2016.

Throughout the winter after trial production late last year, the Company
continued to make effective and successful progress on equipment
maintenance and technical modification work for the processing plant and
smelting plant in order to complete commissioning work during trial
production and reach the design capacity of 2,000 tonnes per day. The
processing plant has been continuously running and is currently
processing 1,700 tonnes of ore per day. Meanwhile the smelting plant has
satisfied the conditions for continuous operation after equipment
maintenance and technical modification. By the end of August 2016, the
Company had produced 2,175tonnes of concentrate. The smelting of the
gold from the concentrate is expected to start in October 2016.

On June 4th, the President of Republic of Tajikistan visited the
smelting and processing plant and attended the opening ceremony of the
processing plant.

In order to manage the production in a more efficient way, senior
operational engineers have been recruited to assist in the
transformation of Pakrut from the construction stage to production.

Financial Results

The amount incurred by the Company on development and construction work
during the first six months of 2016 was US$39,587,000 (30 June 2015:
US$29,673,000). Administration expenditure was US$2,820,560 (30 June
2015: US$1,277,000). The overall loss incurred by the Company was
US$3,400,000(30 June 2015: US$1,203,000). Total cash equivalents at the
end of the period amounted to US$109,020,000 (30 June 2015:
US$13,218,000).

In the first half of 2016, new debt financing totaling US$220 million
was secured from the China Nonferrous Mining Group and the Construction
Bank of China. The new loans were used settle the ICBC loan balance and
part of the previous shareholder loan balance in order to maximise the
Company’s cash position and reduce financing costs. As at 30 June 2016
the Company’s outstanding debt balance consisted of US$311 million with
$211 million owed to China Nonferrous Metals Int’l Mining Co.,
Ltd(“CNMIM”) and CNMC International Capitals Company Limited. Post
period end the Company paid down $55 million of the CNMIM loan.

Outlook

The Company remains focused on the transformation of the Pakrut Gold
Project from construction to production and is on course to reach design
capacity of 2,000 tonnes per day for processing within the second half
of 2016. The recruitment of more senior operational engineers will be
conducted in due course while Pakrut is transforming from construction
stage to operation.

The permanent camp at site is expected to be completed before winter and
construction of the new tailings dam is expected to begin shortly.

I would like to take this opportunity to thank all of our employees,
management and advisors for their continued effort in 2016 and thank our
shareholders for their continued support. I very much look forward to
updating our shareholders on the mine production and gold pour.

Wu Xiang

Non-Executive Chairman

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIXMONTHS ENDED 30 JUNE 2016

CHINA NONFERROUS GOLD LIMITED

Unaudited

Unaudited

Audited

Six months ended 30 June 2016

Six months ended 30 June 2015

Year ended 31 December2015

US$’000

US$’000

US$’000

Revenue

Interest income

3

1

4

Administrative and other expenses

(2,821)

(1,277)

(3,166)

Foreign exchange (losses)/ gains

(550)

80

(2,988)

Finance costs

(32)

(7)

Loss before Tax

(3,400)

(1,203)

(6,150)

Income tax

-

-

-

Loss after Tax

(3,400)

(1,203)

(6,150)

Total comprehensive income

-

-

-

-Total comprehensive income for the period attributable to owners
of the Company

(3,400)

(1,203)

(6,150)

Earnings per Share

-Basic and diluted (US cents)

(0.89)

(0.31)

(0.0161)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

CHINA NONFERROUS GOLD LIMITED

Unaudited

Unaudited

Audited

30 June 2016 US$’000

30 June 2015 US$’000

31 December 2015

US$'000

Non-current Assets

Intangible assets

-

-

Mine under construction

284,077

157,005

244,529

Prepayments for property, plant and equipment

565

2,689

-

Property, plant and equipment

10,573

11,340

11,624

Total Non-Current Assets

295,215

171,034

256,153

Current Assets

Inventories

40,164

34,776

39,390

Trade and other receivables

2,571

173

1,010

Cash and cash equivalents

109,020

13,218

2,213

Total Current Assets

151,755

48,167

42,613

Non-Current Liabilities

Payables for property, plant and equipment

(73,534)

-

-

Provision for other liabilities and charges

-

(593)

(646)

Trade and other payables

-

-

-

Borrowings

(275,000)

(134,877)

(56,437)

Total Non-Current Liabilities

(348,534)

(135,470)

(57,083)

Current Liabilities

Trade and Other payables

(46,940)

(5,628)

(74,204)

Borrowings

(20,000)

(20,687)

(132,583)

Total Current Liabilities

(66,940)

(26,315)

(206,787)

Net Current Assets(Liabilities)

84,815

21,852

(164,174)

Net Assets

31,496

57,416

34,896

Total Assets Less Current Liabilities

380,030

192,886

91,979

Capital And Reserves

Capital

38

38

38

Share premium

65,901

65,901

65,901

Other reserves

10,175

10,175

10,175

Retained earnings

(44,618)

(18,698)

(41,218)

Total Equity

31,496

57,416

34,896

Total Equity and Liabilities

446,970

219,201

298,766

CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2016

CHINA NONFERROUS GOLD LIMITED

Unaudited

Unaudited

Audited

Six months ended 30 June 2015

Six months ended 30 June 2014

Year ended 31 December 2015

US$’000

US$’000

US$’000

Cash Flows from Operating Activities

Loss before tax

(3,400)

(1,203)

(6,150)

Adjustments for:

Interest income

-

-

(4)

Depreciation

908

5

542

Share based payments

Finance costs

-

7

-

Operating cash flows before movements

(2,492)

(1,191)

(5,612)

in working capital

Advance to suppliers

243

(1,973)

-

Trade and other receivables (increase) / decrease

(46)

160

39

Other payables (decrease) / increase

43,688

(8,574)

49,615

Decrease(increase) in Inventory

Cash used in operations

41,393

(11,577)

49,615

Income tax paid

-

-

Net Cash used in Operating Activities

41,393

(11,577)

44,042

Cash flows from Investing Activities

Payments for intangible assets

-

Payments for property, plant and equipment

(61)

(2,153)

(2,282)

Payments for construction in progress and mining rights

(38,752)

(17,476)

(111,999)

Increase in Inventories

(774)

(10,044)

(14,658)

Interest received

-

-

4

Net cash used in Investing Activities

(39,587)

(29,673)

(128,935)

Cash flows from Financing Activities

Proceeds from issue of shares

-

190

190

Proceeds from borrowings

240,000

46,235

110,909

Repayment of borrowings

(135,000)

(10,229)

(31,375)

Interest paid

(10,890)

Net Cash from/(used in) Financing Activities

105,000

36,196

68,834

Net Decrease in Cash and Cash Equivalents

106,806

(5,054)

(16,059)

Cash and cash equivalents at beginning of the period

2,213

18,272

18,272

Cash and cash equivalents at end of the period

109,019

13,218

2,213

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2016

CHINA NONFERROUS GOLD LIMITED

Share

Share

Other

Retained

Total

capital

premium

reserve

earnings

equity

US$’000

US$'000

US$'000

US$'000

US$'000

Balance at 1 January 2015

38

65,711

10,175

(17,495)

58,429

Loss and total comprehensive

-

-

-

(1,203)

-1,203

income for the period

Issue of shares in respect of exercise of share options

-

190

-

-

190

Balance at 30 June 2015

38

65,901

10,175

(18,698)

57,416

Balance at 1 January 2016

38

65,901

10,175

(41,218)

34,896

Loss and total comprehensive incomefor the period

-

-

-

(3,400)

-3,400

Loss and total comprehensive incomefor the period

Balance at 30 June 2015

38

65,901

10,175

(44,618)

31,496

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

1. Accounting Policies

These unaudited condensed interim financial statements were approved for
issue by the China Nonferrous Gold Limited Board of Directors on 28
September 2016.

These condensed interim financial statements have been prepared in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS). The financial
information has been prepared under the historical cost convention.

These condensed interim financial statements do not constitute statutory
accounts.

As permitted, the Group has chosen not to adopt IAS 34 ‘Interim
Financial Statements’ in preparing these condensed interim financial
statements.

The Group has applied consistent accounting policies in preparing the
condensed interim financial statements for the six months ended 30 June
2016 and the comparative information for the six months ended 30 June
2015 and the financial statements for the year ended 31 December 2015
and the financial statements for the year ended 31 December 2015.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the
business. The key risks that could affect the Group’s medium term
performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group’s 2015 Annual
Report and Financial Statements, a copy of which is available on the
Group’s website: www.cnfgold.com.

Critical accounting estimates and judgements

The preparation of consolidated interim financial statements requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the end of the reporting period. Significant items
subject to such estimates are set out in the Group’s 2015 Annual Report
and Financial Statements. The nature and amounts of such estimates have
not changed during the interim period.

The functional currency of the Group is US dollars and accordingly the
amounts in the interim results are denominated in that currency.

Basis of Consolidation

The consolidated Financial Statements incorporate the Financial
Statements of the Company and all Group undertakings. These are
adjusted, where appropriate, to conform to Group accounting policies.
Subsidiaries are all entities over which the Group has control which is
where the Group is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those
returns through its power over the entity. All significant intercompany
transactions and balances between group undertakings are eliminated on
consolidation.

Subsidiaries are consolidated from the date on which control is
transferred to the Group, and continue to be consolidated until the date
when such control ceases.

Mines under construction

Expenditure is transferred from “Exploration and evaluation” assets to
mining rights within “Mines under construction” once the work completed
to date supports the future development of the property and such
development receives the requisite approvals. All subsequent expenditure
on technically and commercially feasible sites is capitalised within
mining rights.

All expenditure on the construction, installation or completion of
infrastructure facilities is capitalised as construction in progress
within “Mines under construction”. Once production starts, all assets
included in “Mines under construction” will be transferred into
“Property, Plant and Equipment” or “Producing mines”. It is at this
point that depreciation / amortization commences over its useful
economic life.

Mines under construction are stated at cost. The initial cost comprises
transferred exploration and evaluation assets, construction costs,
infrastructure facilities, any costs directly attributable to bringing
the asset into operation, the initial estimate of the rehabilitation
obligation, and, for qualifying assets, borrowing costs. Costs are
capitalized and categorized between mining rights and construction in
progress respectively according to whether they are intangible or
tangible in nature.

Property, plant and equipment

Property, plant and equipment (other than construction in progress) is
stated at cost, less subsequent accumulated depreciation and subsequent
accumulated impairment losses, if any.

Depreciation of property, plant and equipment (other than construction
in progress) is calculated using the straight-line method to allocate
their costs to their residual values over their estimated useful lives
using the following rates per annum:

The estimated useful lives, residual values and depreciation method are
reviewed at the end of each reporting period, with the effect of any
changes in estimate accounted for a prospective basis.

Impairment losses on tangible and intangible assets

Exploration and evaluation assets and mines under construction are
assessed for impairment annually or where there is an indication that an
asset or cash generating unit (“CGU”) may be impaired. If an indication
exists, or when annual impairment testing for an asset is required, the
Group estimates the asset’s or CGU’s recoverable amount. The recoverable
amount is the higher of an asset’s or CGU’s fair value less costs to
sell and its value in use. Where the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset/CGU is considered impaired and
is written down to its recoverable amount. The Group bases its
impairment calculation on detailed budgets and forecasts based on the
life-of-mine plans.

The assessment is carried out by allocating exploration and evaluation
and mines under construction assets to CGUs which are based on specific
projects and geographical areas. Where exploration for and evaluation of
mineral resources in CGUs does not lead to the discovery of commercially
viable quantities of mineral resources and the Group has decided to
discontinue such activities at the unit, the associated expenditure will
be written off to profit or loss. Exploration and evaluation assets are
impaired when the Group’s right to explore in an area has expired.

2. Earnings per Share

Basic earnings per share are based on the weighted average number of
ordinary shares issued during the half year of 2016: 382,392,292 (2015:
381,407,570). There is no difference between basic and diluted earnings
per share as the Company is loss making.

3. Going Concern

The Group’s business activities, together with the factors likely to
affect its future development, performance and position are set out in
Annual report for the year ended 31 December 2015 which can be found on
the Company’s website. The accounting policies include the Group’s
objectives, policies and processes for managing its capital; its
financial risk management objectives; details of its financial
instruments; and its exposure to liquidity risk. During the period the
following refinancing steps have been undertaken by the Company:

On 6th May 2016 the Group obtained a loan with CNMC International
Capitals Company Limited (“CNMC”), an associate of CNMIM of US$120
million (“CNMC Loan”). This loan has been used to refinance the loan
facility with ICBC. The CNMC Loan is repayable on 31 December 2018 and
includes an annual fixed interest rate of 4% on the amount drawn down,
payable in arrears. On 27th June 2016 the Group drew down a further loan
of US$19,114,809 from CNMIM for working capital purposes.

On 1st July the Group announced an agreement with the China Construction
Bank Corporation Macau Branch for a loan facility of up to USD$ 100
million (“CCBC loan”). This loan has been used to refinance the
Company’s 2012 loan with CNMIM and also for working capital purposes.
The CCBC loan is for a maximum of 5 years and is repayable 60 months
from the date of first drawdown. The annual interest rate is 2.1% plus 3
month LIBOR.

As at the date of approval of these interim statements, and based upon
the budgeted levels of expenditure, the refinancing undertaken, Board
approved cash flow forecasts and expected production dates, the
Directors are satisfied that the Group has sufficient cash and loan
facilities to finance the Group’s operating expenses and any further
development and construction of the Pakrut Gold Project that is required.

The Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence and thus they continue to
adopt the going concern basis of accounting in preparing the interim
results.

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